There came a time when, as Council tenants, we decided to evoke our right to buy under the scheme introduced by the Government. We knew we had a substantial discount having been tenants for years. What we had to do was work out whether we could afford to pay off a mortgage. The rate interest was fairly high at the time, about 7% if I remember correctly. So I spent time working out our average annual outgoings and then figured out what the mortgage might be. This gave us a figure which we could reconcile to our combined net salary. Because of our discount the figures were very positive but I was still concerned about the interest rate. Nothing good was said about the rate it was rising and no-one was sure if or when it would stop. I showed Amanda but said I would re-do the figures to show a base interest rate of 10% - just in case we had to face such an (unthinkable) monetary situation. This time my simple calculations did not go well at all and I recall them being very close to the edge of being unmanageable. We discussed this again and were even more unsure that we would be doing the right thing. It was then that I recall saying that what would happen should the base rate rise to 15%. Knew the words were coming out of my mouth, but it seemed so ridiculous I didn’t really believe them! Well, we decided to shelve the whole idea until such a time it would be more favourable to borrow money. It was a God led decision folks. The base interest rate climbed to an incredible 14% and over the years we realised we would have lost the roof over our heads because we would not have had the money to keep up the payments. That would have been a disaster with 2 small children. With interest rates so high the bottom fell out of the housing market and it was then that many borrowers faced negative equity. We were very grateful we did not own property. Not only that, but Council rents were pretty stable then and were still lower than paying a mortgage. It was win win! It was nearly a decade later and after our circumstances had improved that we felt confident enough to borrow the money to purchase our house. Praise the Lord for insight!

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